Interactive voice response (IVR) is a technology that allows a computer or machine to interact with humans through the use of voice and dual-tone multi-frequency signaling (DTMF) keypad inputs.
In telecommunications, IVR systems allow customers to interact with a company's database via a telephone keypad or by speech recognition, after which they can service their own inquiries by following an IVR dialogue. In addition, IVR systems can respond with a prerecorded or dynamically generated audio to direct users further on how to navigate through the IVR system.
IVR systems can be applied to control almost any function where transactions can be broken down into a series of simple interactions. Further, IVR systems that are deployed in a communications network are sized to handle large call volumes.
IVR systems are typically used to service high call volumes, reduce cost, and improve the customer experience. Examples of typical IVR applications are telephone banking, televoting, and credit card services. Companies also use IVR services to extend their business hours to 24/7 operation.
The use of IVR and voice automation enables a company to improve its customer service and lower its costs, due to the fact that callers' queries can be resolved without the need for queuing and incurring the cost of a live agent who, in turn, can be directed to deal with more demanding areas of the service. If the caller does not find the information needed, or requires further assistance, the call can then be transferred to an agent. This makes for a more efficient system in which agents have more time to deal with complex interactions: for example, customer retention, up-selling, cross-selling, and issue resolution. This way, the customer is more likely to be satisfied with a personalized service, and the interaction is likely to be more fulfilling and rewarding for the agent, as opposed to dealing with basic inquiries that require yes/no responses, such as obtaining customer details.
Call centers use IVR systems to identify and segment callers. The ability to identify customers allows services to be tailored according to the customer profile. The caller can be given the option to wait in the queue, choose an automated service, or request a callback (at a suitable time and telephone number). The system may obtain caller line identification (CLI) data from the network to help identify or authenticate the caller. Additional caller authentication data may also include account number, personal information, password and biometrics (such as a voice print).
When an IVR system answers multiple phone numbers, the use of dial number identification service (DNIS) ensures that the correct application and language is executed. A single, large, IVR system can handle calls for thousands of applications, each with its own phone numbers and script.
Generally, two main varieties of speech recognition are used in IVR: (i) those based upon predefined grammars (used in “directed” dialogues), and (ii) those based on statistically trained language models (used in “natural language” dialogues). Directed dialogues prompt the caller with specific questions or options. Natural language dialogues employ open questions (e.g., “How can I help you?”), are more conversational, and can interpret free-form responses.
Other technologies include using Text-To-Speech (TTS) to speak complex and dynamic information, such as e-mails, news reports or weather information. TTS is computer generated synthesized speech that is no longer a robotic voice traditionally associated with computers. Real voices create the speech in fragments that are spliced together (concatenated) and smoothened before being played to the caller.